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One of the biggest fires the Metropolitan Fire Brigade has
fought in years consumed a paper company's warehouse in Flemington
this morning, causing an estimated $20 million in damage.

The blaze broke out about 1am, destroying much of the Lombard
The Paper People warehouse on Mt Alexander Road and the adjoining
Victoria Ranges indoor rock climbing centre and pistol range.

Deputy Chief Fire Officer Keith Adamson said investigations into
the cause of the fire had not yet begun.

He said the site was unstable. The roof had collapsed and large
iron beams were suspended in the air. He said the blaze had taken
more than two hours to control and some pockets of fire continued
to burn in places that were not safe to approach.

MFB commander Wayne Garrard said flames leapt up to 30 metres
into the air. A thick pall of smoke hung over the area, and some
residents called in to radio talk shows claiming to have heard
ammunition exploding within the building that housed the pistol
range.

But Deputy Chief Fire Officer Keith Adamson said the MFB had
been assured on arrival at the scene that the range had been
secured and combustibles had been locked away before the fire
began.

"They were told that all the ammunition was locked away in a
fire proof cabinet, Mr Adamson said.

He said the contents of the warehouse posed particular problems
for firefighters.

Car detailer Ronan Cribbin was sleeping next door in a portable
office in Bernie Smith's Classic Cars where he works.

A friend, Grant McKay, phoned him about 1.30am (AEDT) to warn
him about the fire.

"When the phone rang I thought `Who's this idiot'," he said.

"The fire was unreal. I was very frightened. If Grant hadn't
rung me, I don't know what would have happened. I didn't smell
smoke or nothing."

Mount Alexander Road has been closed to traffic.

Traffic has been diverted to CityLink at the Mt Alexander Road -
Flemington Road entrance, but spokeswoman Jane Calvert said it was
not causing traffic delays this morning because the diversion was
outbound from the city.

Tolls have been suspended northbound on CityLink between
Flemington Road and Moreland Road.

Ms Calvert said the tolls would be suspended for as long as the
traffic diversion was in place.

A police spokesman said it would take "a few hours at least"
before the traffic returned to normal.

MFB investigators, arson squad detectives and WorkSafe officers
are on the scene.